Taxes in Retirement – Case Studies

Frank Yozwiak

Atheneum

Key Takeaways: Your sources of income will change, but you will still owe taxes in retirement. In general, your principal (or “cost basis”) will be returned to you tax-free. A diversified portfolio protects in down markets and provides flexibility when planning for taxes.     When you’ve spent your adult life working and saving, retirement … Continued

The Investor Taxation Lifecycle

John Boardman

Atheneum

We are not CPAs nor are we tax preparers, but a great deal of our time is spent working with clients and their professionals honing a financial plan that is tax efficient.  We advise our clients to hire a CPA with whom we can work together to manage their financial plans.  The financial plan and … Continued

When Too Much Tax Deferral Becomes Counterproductive

Brian Burton

Atheneum

Click here to watch video in new window. Most of us have been told from early on in our careers to defer as much income as possible to ensure we’ll be properly prepared for retirement.  While not bad advice, most of these strategies involve only qualified deferrals, meaning all income tax gets punted until the … Continued

Tax Management in Bull Markets

Cameron Hamilton

Weekly Update

How do we manage accounts when everything is up? With cooperative markets, many investors have accumulated substantial capital gains in their investment accounts. We analyze the trade-off between ideal allocation & paying tax to achieve it. In general, we advocate paying tax along the way to avoid over-concentration. When I was growing up, my granddad … Continued

Upcoming Child Tax Credit Checks: Not Free Money

Cameron Hamilton

Weekly Update

Max Child Tax Credit now $3,600/child under 6; $3,000 ages 6-17 Even high-income families will receive 50% advances on these credits Advance payments can increase your tax bill next year, all else equal If you take a vacation in the middle of this month, you may come home to a surprise check in the mail.  … Continued

Don’t Be an April Fool: Plan for Taxes Now

Cameron Hamilton

Weekly Update

Tax reform was a hot topic early in the year as we learned of changes and began to theorize new strategies.  To date, the IRS has only released draft forms for 2018 and there are whispers of Tax Reform 2.0 in midterm election campaigns; there could be more changes to come.  Nonetheless, we believe now … Continued

Endowments & the Endow Kentucky Tax Credit Program

Frank Yozwiak

Weekly Update

Boston and Philadelphia, 1790 – Benjamin Franklin, a Founding Father of the United States, got the idea to create an endowment for his native city of Boston, and his adopted home, Philadelphia.  In a codicil to his Will, Franklin left 1,000 pounds (roughly $4,400 at the time) to each endowment, on the condition that each … Continued

Tax Update Conference Call

Ballast

Conference Call

Last Thursday we hosted a conference call to discuss 2018 changes to the tax code and how they might affect our clients.  For your convenience, we’ve included an outline of topics discussed below.  As a reminder, this is our current interpretation of the new tax law changes; further IRS guidance will become available throughout the year.  If … Continued

Will Tax Reform Hurt Charitable Giving?

Cameron Hamilton

Weekly Update

Congress passed its tax reform bill last December with the title “Tax Cuts and Jobs Act.”  For most families the tax cuts part of the title will be true thanks to lower tax brackets.  The other boon to taxpayers, especially to middle income earners, is the increased standard deduction.  In 2018 it nearly doubles to … Continued

2017 Tax Information

Ballast

Weekly Update

As of last week, all 1099s from TD Ameritrade have been mailed to clients.  Please allow through the middle of next week for your documents to be delivered through regular mail to your address of record.  Tax documents will be labeled “Important Tax Information Enclosed”, but may look similar to other mailings.  If expect a … Continued